Managing The Operations Function

ENTREPRENEURSHIP MAY 24, 2023
Chapter 9:
Managing the
Operetions
Function
Presented by: Benj Ulysses F. Esteban
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TABLE OF CONTENTS MAY 24, 2023
Concepts of Operations
A
Management
Assessing the performance

B
of Business Enterprise
Presentation C
Framework for analyzing the
operations of an Enterprise
Overview D
System Approach: Input-
Process-Output (IPO)
Framework
E Value Chain Approach
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A. MAY 24, 2023
Concepts of Operations
Management
Operations Operation
Management Manager
is a component of management that
the ones who plans the structure of
deals with planning, implementing,
production by identifying the output
and monitoring the process of
to be produced.
producing goods and services.
In production in terms of effectiveness, efficiency, quality,

timeliness, dependability, flexibility, cost, and other criteria
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B.
Assessing the perorfance of a Business Enterprise

Another way of undertaking performance effectiveness
is to relate it with the need of the customers. it can also
be assessed in terms of quality, speed, dependability,
and flexibility
Performance Effectiveness
Effectiveness indicates how the output of the firm was
able to achieve the objectives set by the business
enterprise.
A business firm is considered effective if it is able to

Performance Effiency
The concept of efficiencyd enotes how the output of the
produce the goods and service that it has planned to
firm was realized through the use of resources.
produce.
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C. 23 JANUARY
Frame work for analyzing the

operations of an Enterprise
System approach Value chain approach
D. 23 JANUARY
System approach: Input: Process-

Output (IPO) Framework
The structure of production is understood as an
arrangement of relationships between input and
output
3 major components in this production relationship:
Input, Processs Output.
D. 23 JANUARY
Resource Inputs (5Ms)
1. Materials
•are semiprocessed goods that will be
subjected to further transformation in the
production process. They are also called raw
materials or intermediate inputs
D. 23 JANUARY
2. Manpower
•is the human resource input used in the
production process. Manpower does not only
include labor or muscular power but also
intellectual, creative abilities, and other qualities of
individuals that can contribute to production.
D. 23 JANUARY
3. Machinery
represents all man-made physical capital used in
the production process. Aside from machines, the
tools, durable equipment and the physical plants
are also.
D. 23 JANUARY
4. Method
•denotes the process of combining raw
materials and how these are going to be
transformed using the other factor inputs of
production This resource input is also called
technology or techniques production since it
prescribes the intensity in the use of factor inputs.
D. 23 JANUARY
5. Money
•is a financial resource used to purchase all
the resources needed by the firm for its
operations. The owners of the company
contribute seed money for the initial operations of
the firm. Money is also needed to purchase raw
materials
D. TWO MAJOR CATEGORIES OF INPUT
Intermediate inputs
ARE SEMIPROCESSED MATERIALS THAT NEED FURTHER
TRANSFORMATION TO PRODUCE A FINISHED PRODUCT. THEY ARE
ALSO CALLED RAW MATERIALS OR MATERIALS AS CLASSIFIED IN THE
IPO FRAMEWORK
Factor inputs
ARE THE TRANSFORMING INPUTS THAT WILL PROCESS THE
INTERMEDIATE INPUTS INTO FINISHED PRODUCTS. BECAUSE OF
THEIR TRANSFORMING PROPERTIES THESE INPUTS ARE ALSO
CALLED PRODUCTIVE INPUTS FACTOR INPUTS INCLUDE LABOR,
CAPITAL , LAND AND TECHNOLOGY.
D.
Process
THE VARIOUS FORMS OF TRANSFORMATION
ARE AS FOLLOWS:
1. Physical transformation
OCCURS WHEN THE PROCESSING OF RAW MATERIALS
CONVERT THEM INTO SIGNIFICANTLY ALTERED NEW
PRODUCT
D. PROCESS

ARE AS FOLLOWS:
2. Locational transformation
ARISES WHEN A PRODUCT CHANGES ITS LOCATION
THROUGH VARIOUS MEANS OF TRANSPORTATION
AND COMMUNICATION
D. PROCESS

ARE AS FOLLOWS:
3. Information transformation
HAPPENS WHEN KNOWLEDGE AND SPECIALIZED
SKILLS OF PROVIDERS ARE TRANSMITTED TO THEIR
CUSTOMERS
D. PROCESS

ARE AS FOLLOWS:
4. Exchange transformation
TAKES PLACE WHEN A COMMODITY IS TRANSMITTE
FROM THE SUPPLIER TO ITS BUYER.
D. PROCESS

ARE AS FOLLOWS:
5. Extractive transformation
HAPPENS WHEN A NATURAL RESOURCE IS TAKEN O
FROM ITS HABITAT
D.
Output
5 outputs of production
1. OUTPUTS FROM PHYSICAL TRANSFORMATION
FOOD GRAINS, CANNED FOOD, CLOTHES, BREAD, FURNITURE,
GASOLINE, CONSTRUCTION MATERIALS, CARS, ELECTRONIC
GADGETS, AND OTHER MANUFACTURED GOODS.
D. OUTPUT
2. OUTPUTS FROM LOCATIONAL TRANSFORMATION
TAXI SERVICES, BUS SERVICES, TRAIN SERVICES, SEA TRANSPORT,
AIR TRANSPORT, POSTAL SERVICES, TELEPHONE SERVICES, AND
OTHER TELECOMMUNICATION SERVICES.
D. OUTPUT
3. OUTPUTS FROM INFORMATION TRANSFORMATION
EDUCATIONAL SERVICES, HEALTH SERVICES, LEGAL SERVICES,
CONSULTANCY SERVICES, AUDITING SERVICES, AND OTHER
PROFESSIONAL SERVICES.
D. OUTPUT
4. OUTPUTS FROM EXCHANGE TRANSFORMATION
RETAIL SERVICES OF SARI-SARI STORES, GROCERIES, SUPERMARKETS
AND DEPARTMENT STORES, AND WHOLESALE SERVICES OF LARGE
DISTRIBUTION OUTLETS
D. OUTPUT
5. OUTPUTS FROM EXTRACTIVE TRANSFORMATION
GOLD ORES, COPPER ORES, TIMBER. LOGS, SAND, SEAFOOD, AND
OTHER PRODUCTS DERIVED FROM NATURAL RESOURCES

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ENTREPRENEURSHIP MAY 24, 2023

Assessing the performance

In production in terms of effectiveness, efficiency, quality,

Assessing the perorfance of a Business Enterprise

A business firm is considered effective if it is able to

Frame work for analyzing the

System approach Value chain approach

System approach: Input: Process-

Resource Inputs (5Ms)

Resource Inputs (5Ms)

Resource Inputs (5Ms)

Resource Inputs (5Ms)

Resource Inputs (5Ms)

THE VARIOUS FORMS OF TRANSFORMATION

THE VARIOUS FORMS OF TRANSFORMATION

THE VARIOUS FORMS OF TRANSFORMATION

THE VARIOUS FORMS OF TRANSFORMATION

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